Hot Coffee

IT WAS PROBABLY THE MOST EXPENSIVE CUP OF COFFEE IN HISTORY. IN 1992, STELLA LIEBECK WAS AWARDED MORE THAN $2 MILLION IN DAMAGES AFTER INJURING HERSELF WITH A CUP OF COFFEE. THE BIG QUESTIONS: HOW? AND WHY?

In 1992, Stella Liebeck was in the passenger seat of her car. She had just ordered a takeaway coffee from a McDonald’s drive-through restaurant. Her grandson, Chris, parked the car so that Liebeck could add cream and sugar to the drink. But as she placed the coffee cup between her knees, she spilt the entire cup of burning hot coffee on her lap. Ouch!

Initially, Liebeck wanted to settle out of court. She demanded $20,000 to cover her medical costs. However, the company offered just $800, and refused to raise its offer. So, Liebeck contracted a lawyer, Reed Morgan. Morgan filed suit in a New Mexico District Court accusing the company of “gross negligence” for selling coffee that was “unreasonably dangerous”. Morgan raised the amount to $90,000, but the restaurant refused once again. Eventually, the case went the trial.